Wealth Creation: A Systems Mindset for Building and Investing in Businesses for the Long Term: 541 (Wiley Finance) - Hardcover

Madden, Bartley J.

Hardcover

ISBN 10: 0470488689 ISBN 13: 9780470488683

Verlag: Wiley, 2010

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Book by Madden Bartley J

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Wealth creation insights by the creator of the company life-cycleframework known as the CFROI valuation model. Investors searching for companies whose future profitabilitywill far exceed that implied in current stock prices, those inbusiness making decisions to improve company performance, andpoliticians crafting legislation-all use some form of a wealthcreation framework. In this book, author Bartley Madden addresses how to think aboutthe complex dynamics in generating wealth and the practicalbenefits to be gained from upgrading one's wealth creationframework. Throughout these pages, Madden shares six criticalinsights: * A systems mindset focuses not so much on the individualpieces of a system, but on how all the pieces work together toachieve the goal envisioned for the system. The systems way ofthinking described in Wealth Creation helps to avoidunintended, bad consequences, and to generate insights forleveraging change that produces big gains in wealth * Economic systems -- the rules and relationships that exist tocreate wealth by delivering value to customers -- are devilishlycomplex and therefore solving economic problems requires extensiveknowledge. Seen in this light, knowledge growth and wealthcreation are two sides of the same coin. * A prerequisite to making better buy/hold/sell investmentdecisions and business judgments is an improved understanding ofhow wealth is created. An especially useful approach described inthis book is to connect business firms' financial performance tostock prices via the firms' competitive life-cycleframework * A deeper understanding of business firms makes it plain thatcustomers, employees, and shareholders havemutual, long-term interests. In other words, a free-marketsystem geared to serving customers through competition is a systemin which participants share the wealth that is jointly created * There is a huge opportunity for sustained, higher economicgrowth through voluntary initiatives by the private sector. Oneinitiative involves an accelerated implementation of leanmanagement, which was pioneered by Toyota. This is a systemsapproach that continually purges waste and optimizes the use ofresources in delivering value to customers * The other initiative concerns improved corporategovernance. The wealth creation principles discussed in thisbook offer a blueprint for boards of directors to vastly improvehow they fulfill their responsibility to shareholders, and in sodoing, improve the performance of corporate America These ideas have taken shape as a natural outgrowth of acommercial research program that began in 1969 at Callard, Madden& Associates focused on how to value business firms. Itproduced the CFROI (cash-flow-return-on-investment) metric and itsrelated life-cycle valuation model. This work was further advancedat HOLT Value Associates, which was later acquired by Credit Suissein 2002. Credit Suisse HOLT continues the research to improve thevaluation tools and related global database that analyzes 20,000companies in over 60 countries. This system is used by a largenumber of institutional money management firms worldwide in orderto make better investment decisions.

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Praise for Wealth Creation

"Bart effectively illustrates that neither unprincipled opportunism nor endless regulation can lead to business success and societal well-being. Instead, such universal benefits can only derive from a relentless focus on creating real, long-term value."
—Charles G. Koch, Chairman of the Board and CEO, Koch Industries, Inc.

"This book is for investors, but public policymakers take note. Its message for both is that wealth is created from within, not top down or outside in. For investors there are practical guidelines to identify firms early in their life cycle that demonstrate a high capacity for innovation and integrity, and that listen to and serve their customers. Policymakers must nurture this business environment for all to prosper."
—Vernon L. Smith, Economic Science Institute, Chapman University, Nobel Laureate in Economics, 2002

"We use the life-cycle framework explained in Bart Madden's book as the linchpin for analyzing companies and diversifying clients' portfolios. Before voting for leaders in Washington, we should quiz them on how well they understand the principles laid out in Wealth Creation."
—Christopher C. Faber, founder, IronBridge Capital Management, LP

"An imaginative [book] that integrates a dynamic approach to business systems with the fundamentals of wealth creation."
—Douglass C. North, Nobel Laureate in Economics, 1993

"This enlightening book helps the reader understand what is needed to get a free market economy to function ideally, and identifies significant shortcomings in current arrangements. Particularly illuminating is the emphasis on an absence of incentives for management to focus on long-term performance of the firm, and the failure of directors to provide effective oversight."
—William J. Baumol, author of The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism

"Madden's competitive life-cycle framework will provide insights that help forecast life-cycle patterns of economic returns that the firm will generate for its investors. I recommend this book to every long-term value investor."
—Ravi Jagannathan, Chicago Mercantile Exchange/John F. Sander Professor of Finance, Kellogg School of Management, Northwestern University

Über diese Auflage

• Verlag: Wiley
• Erscheinungsdatum: 2010
• ISBN 10: 0470488689
• ISBN 13: 9780470488683
• Einband: Tapa dura
• Anzahl der Seiten: 204